SEBI unveils ethics code preventing conflicts and flagging 20L stakes
SEBI just rolled out a fresh ethics code, shifting focus from simply reporting conflicts of interest to actively preventing them.
The new rules mean stricter investment limits, mandatory stepping aside from decisions when there's a conflict, more transparency, and the launch of a dedicated Office of Ethics and Compliance (OEC).
Plus, holdings above ₹20 lakh or 5% are now flagged as significant, so minor stakes don't get mixed up with major ones.
Experts question SEBI clarity and independence
SEBI's update takes cues from top global regulators like the US SEC and UK FCA to strengthen how conflicts are handled.
Still, some experts worry about how these changes will play out.
Alay Razvi, Managing Partner, Accord Juris, feels terms like "close friendships" need clearer definitions to avoid confusion.
Supreme Court advocate Tushar Kumar points out that unclear reporting lines for the OEC could threaten its independence, while Amit Tungare, Managing Partner, Asahi Legal, warns frequent recusals might slow things down inside SEBI.